Bopa Moruo Fund II (Pty) Ltd and Others v ASOC I Bidco Three (Pty) Ltd (LM065Aug21) [2021] ZACT 66 (18 October 2021)

Bopa Moruo Fund II (Pty) Ltd and Others v ASOC I Bidco Three (Pty) Ltd (LM065Aug21) [2021] ZACT 66 (18 October 2021)

The Tribunal found that the proposed merger would not result in any horizontal or vertical overlaps, as the acquiring firms do not offer products or services substitutable with those of SkyNet SA. There would be no integration of businesses or negative impact on employment, as the acquiring firms are private equity investors who do not assume management control. The transaction would promote a greater spread of ownership among historically disadvantaged persons and advance transformation objectives. The Tribunal concurred with the Commission's findings that the merger is unlikely to substantially prevent or lessen competition and raises no public interest concerns. Accordingly, the merger...

Citation
[2021] ZACT 66
Parties
Applicant: Bopa Moruo Fund II (Pty) Ltd; Applicant: RMB Ventures Four (Pty) Ltd; Applicant: New GX Ventures SA (Pty) Ltd; Respondent: ASOC I Bidco Three (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 October 2021
Case Number
LM065Aug21
Procedural Posture
Merger Review / Decision on Approval
Outcome
Merger unconditionally approved.
Judges
Andreas Wessels, Enver Daniels, Thando Vilakazi
Legal Topics
Large Merger Review, Public Interest Considerations, Spread of Ownership, Employment Impact, Horizontal and Vertical Overlap
Competition Law Large Merger Review Public Interest Considerations Spread of Ownership Employment Impact Horizontal and Vertical Overlap

Case Brief

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Parties

Bopa Moruo Fund II (Pty) Ltd

Applicant

RMB Ventures Four (Pty) Ltd

Applicant

New GX Ventures SA (Pty) Ltd

Applicant

ASOC I Bidco Three (Pty) Ltd

Respondent

Procedural Posture

Merger Review / Decision on Approval

Legal Issues

  1. 1 Whether the proposed merger is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the proposed merger raises any public interest concerns, including employment and spread of ownership.

Ratio Decidendi

The Tribunal found that the proposed merger would not result in any horizontal or vertical overlaps, as the acquiring firms do not offer products or services substitutable with those of SkyNet SA. There would be no integration of businesses or negative impact on employment, as the acquiring firms are private equity investors who do not assume management control. The transaction would promote a greater spread of ownership among historically disadvantaged persons and advance transformation objectives. The Tribunal concurred with the Commission's findings that the merger is unlikely to substantially prevent or lessen competition and raises no public interest concerns. Accordingly, the merger...

Court Disposition

Merger unconditionally approved.

Orders

  • The large merger between Bopa Moruo Fund II (Pty) Ltd, RMB Ventures Four (Pty) Ltd, New GX Ventures SA (Pty) Ltd and ASOC I Bidco Three (Pty) Ltd is unconditionally approved.